Nemetschek stock weighs Q3 margin effects against firm 2026 targets

Nemetschek reported strong third-quarter growth on Thursday, November 5, 2026, but the HCSS acquisition also widened the gap between reported and underlying earnings. In its Q3 release, the software group said revenue rose 26.6 percent year over year to 371.1 million euros. HCSS was consolidated for the first time from July 1.

Excluding HCSS, organic revenue growth reached 13.7 percent, or 12.5 percent after currency effects. The company said the acquisition contributed to the expansion of its Build business, while the related purchase-price-allocation effect reduced HCSS revenue by approximately 15 million euros in the quarter.

Recurring Revenue Remains The Growth Engine

Annual recurring revenue increased 35.8 percent to 1.4622 billion euros, with organic ARR growth at 18.0 percent. Subscription and software-as-a-service revenue advanced 52.4 percent to 321.9 million euros, supporting Nemetschek's transition toward more recurring sales.

Build was the strongest operating segment. Revenue increased 56.6 percent to 190.8 million euros, while organic currency-adjusted growth reached 23.6 percent. Design revenue grew 7.2 percent, and the company attributed the slower pace partly to a more gradual migration of existing customers from service contracts to subscriptions.

Manage revenue rose 4.0 percent to 13.0 million euros, while Media revenue declined 2.7 percent to 29.5 million euros. Nemetschek now expects Manage to grow at a mid-single-digit rate on a constant-currency basis and sees Media revenue broadly stable. The company said these segment changes do not alter the group outlook.

Reported Profit Reflects HCSS Effects

Q3 EBITDA increased 21.8 percent to 115.9 million euros, but the reported margin fell to 31.2 percent from 32.5 percent a year earlier. Nemetschek cited the HCSS deferred-revenue haircut, mid-single-digit million-euro merger costs and low-single-digit million-euro integration and share-based compensation expenses.

The organic EBITDA margin was 34.8 percent. Net income attributable to shareholders fell 15.7 percent to 46.6 million euros, and reported earnings per share declined to 0.40 euros from 0.48 euros. Adjusted earnings per share, which excludes purchase-price-allocation effects and the HCSS deferred-revenue haircut, rose 20.0 percent to 0.66 euros.

Full-Year Targets Remain Intact

Management kept its 2026 organic, currency-adjusted revenue-growth target at 14 percent to 15 percent and its organic EBITDA-margin target at 32 percent to 33 percent. HCSS is expected to add about 600 basis points to group revenue growth, while acquisition-related effects are expected to reduce the reported EBITDA margin by about 150 basis points.

Nemetschek stock traded at 64.55 euros on Lang & Schwarz at 11:48 CET on Tuesday, November 10, 1.60 percent below the Xetra close of Monday, November 9. The quote reflects the market's current positioning after the results and the company's unchanged group targets, without establishing a causal link.

Nemetschek stock at a glance

• Company: Nemetschek SE
• ISIN: DE0006452907
• WKN: 645290
• Ticker: NEM.DE
• Currency: EUR
• Lang & Schwarz quote: 64.55 euros at 11:48 CET on November 10, 2026
• Change versus Xetra close: 1.60 percent below 65.60 euros on November 9, 2026
• Indices: MDAX, TecDAX

German equity markets provide the broader backdrop for Nemetschek stock through the DAX market environment.

Investors will focus next on the conversion of HCSS growth into recurring earnings, the pace of the Design subscription transition and the development of the Manage and Media businesses. More news and analyses on Nemetschek stock.